The bill amends Section 44-5-13.11 of the General Laws regarding the assessment and taxation of qualifying low-income housing. It specifies that any qualifying low-income housing that has been issued an occupancy permit on or after January 1, 1995, and is encumbered by a covenant recorded in favor of a governmental unit or the Rhode Island housing and mortgage finance corporation, will be subject to taxation at a rate of eight percent (8%) of the previous year's gross scheduled rental income, or a lesser percentage determined by the municipality.

The bill introduces a definition for qualifying low-income housing, which includes: (1) a low-income unit, as defined in 26 USC 42(i)(3) on January 1, 2025, in a qualified low-income housing project, as defined in 26 USC 42(g) on January 1, 2025; or (2) affordable housing, as defined in 42-128-8.1(d)(1) on January 1, 2025, that was approved for tax treatment under this section as of December 31, 2024.

Additionally, the bill clarifies that future housing units must meet federal definitions to qualify for this tax treatment, while existing units that meet the state definition of affordable housing will continue to be eligible if they were approved by the specified date. The act is set to take effect upon passage.

Statutes affected:
1141: 44-5-13.11